September 19: The leather industries of Nepal are facing financial crisis of late. According to Nepal Leather Industry Association, about a dozen industries that prepare leather products in the country are in dire financial state.

General Secretary of the association Mohammad Junaid Iftakhar says that the leather  industries of Nepal are in crisis after failing to compete in the international market.

According to the association, only 12 such industries with domestic investment are currently operational in Nepal.  General Secretary Iftakkhar says that only the leather of goats and buffaloes are available in Nepal while the country has to import leather of cow and other animals from abroad by incurring high  cost. As a result, the leather industries of Nepal are unable to compete in the international market due to high cost of production. The association informed that the cost of chemicals needed for the treatment of the leather is also high.

As the production cost is high, the products manufactured in Nepal are unable to compete in the international market, says Binod Kumar Chaudhary, general secretary of Madhes chapter of the association.

Among the 12 leather industries of Nepal, eight are in Bara-Parsa industrial corridor while four are operating in Biratnagar. The association informed that the annual transaction of footwear in Nepal amounts to Rs 5 billion.